Crude falls below $35 a barrel for the first time since 2009
Oil prices on Monday plunged to their lowest level since 2009 as OPEC continues high volume production and Iran plans to boost exports. Brent crude was down below $37 a barrel while the US benchmark WTI fell below $35 per barrel.
There’s “absolutely no chance” Iran will delay its plan to increase shipments even as prices decline, Bloomberg cited Amir Hossein Zamaninia, Iran’s deputy oil minister as saying. Tehran which expects international sanctions over its nuclear program to be lifted early in January, aims to double crude exports. The country currently exports 1.1 million barrels per day.
Oil prices could slump to $30 per barrel in 2016 and could stay low throughout the year, said Russian Finance Minister Anton Siluanov, warning of tough times ahead.
Deputy Finance Minister Maxim Oreshkin said the country is drawing up plans based on the price fluctuating between $40 and $60 until at least 2022.
That scenario would have devastating implications for OPEC, according to Oreshkin. It would also spell disaster for North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he added.
INC News, 14/12/2015 - via RT
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